Yield Curve. Market Indicators

Transcription

1 Fund Review November

2 Equity Commentary Debt Commentary BSE Sensex and NSE Nifty declined marginally by 0.2% each during October It came on the back one of the best months. However, mid-cap and small-cap indices gained by 2.7% and 3.4% respectively. MSCI India (US$) gained by a marginal 0.3%. Foreign Institutional Investors (FIIs) pumped in US$6.4 billion (the highest ever) in equities even as insurance companies and mutual funds sold US$1.3 billion each over October. Index for industrial production (IIP) for August moderated to 5.6%. In recent months, IIP has remained volatile due to volatility of capital goods segment. INR appreciated by 1.2% against US$ and 10-year treasury yield increased by 15 bps during the month. Indian equity market has been consolidating post a strong performance over September. This consolidation is being helped by strong FII flows as global risk appetite improved and investors are getting more confident about policy makers bias towards quantitative easing (QE2). DIIs have been sellers and there has also been a surge in public issuances over the last month. On the domestic front, quarterly earnings reporting were the key trigger over the month. Corporate India is in process of declaring its second quarterly earnings for the quarter ended September. Q2 FY11 earnings season has been a mixed bag so-far. Financials, IT Services and Industrials have surprised positively, while Materials especially Cement companies, Consumer Discretionary and Telecom companies have disappointed. Robust top-line growth and margin pressure, due to raw material inflation, seems to be a common theme. Foreign investors confidence in India s growth story remains unabated with FII inflows already aggregating over US$25bn in the current calendar year. The inflow is being driven by improving global risk appetite and investors getting more confident about policy makers bias towards quantitative easing. On the domestic front, the central bank hiked the benchmark rates, little unexpectedly, but it has indicated that it might be coming to an end of the increase cycle. Thus, the equity markets rallied even after the rates were raised. Coal India, the largest coal mining company in the world, came out with largest ever IPO of Rs. 150b. Since it was priced attractively it got an enthusiastic response. The overwhelming success of the IPO and subsequent listing might move the needle of investor s sentiments towards equity markets favorably. The lack of retail participation has been the missing link in the story of equity markets rising to new highs. Even as all other components of growing equity markets viz. improving macros, reducing fiscal deficit, rising tax collections, negative real interest rates, rising incomes, growing wealth effect were in place, retail was not participating. Now we believe that a vibrant primary market will not only pull foreign capital but also the retail. The risks to the above thesis remain execution of growth on domestic side and failure of QE2 and lack of growth on the global side. Source : CCIL Bloomberg Yield Curve 9.00% 8.00% 7.00% 6.00% Source : SEBI 30th September th October Net Equity Investments by FII & MFs (US $ Million for the Month) , Oct-10 4-Oct-10 5-Oct-10 6-Oct-10 7-Oct-10 8-Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct-10 FIIS MF Sensex 20, , , , , , , The key event being awaited by the market is the RBI s Second Quarter Policy review on the 2 nd of November. Market expectation is divided as to outcome of the review, with some participants expecting RBI to pause as well. While the RBI may well chose to hike rates by another 25 bps at the review, on an overall basis we expect the pace of rate hikes to slow from here for the following reasons: 1. After recent rapid fire rate hikes, the RBI acknowledges that the process of normalization of rates is broadly over. Hence, incremental rate hikes will be more a function of incoming data. Recent economic data seems to suggest some tapering off of growth momentum while inflation seems to have stabilized; albeit at a higher level than RBI s comfort zone. 2. Given recent rate hikes and a sustained tight liquidity environment, the process of transmission of higher policy rates is well and truly underway as evidenced in rise in money market rates and recent revisions in banks deposit and lending rates 3. Global uncertainties have increased over the last few months. Given limited fiscal headroom or option to further cut rates, major developed market central banks are expected to embark upon a fresh round of asset purchases. The RBI policy review will be followed up by the policy meeting of the US Federal Reserve. The Fed is widely expected to announce the commencement of a second round of quantitative easing at the policy review. Market forecasts indicate that the Fed is likely to announce purchase of approximately USD 500 billion of securities over the next few months and keep the process open ended to accommodate future revisions to the program based on incoming data. Domestic system liquidity deficit increased towards the second half of the month possibly reflecting rise in currency with public. Additional volatility was imparted to money markets on account of a large PSU equity issue underway. On a structural level, a system liquidity deficit of approximately INR 70,000 crores at the start of the busy season is of concern. Policy makers seem to share the concern as was reflected in the government s offer to buy-back all outstanding government securities maturing till the end of the fiscal year. However, the first tranche of the buy back was poorly received by the market as offers worth only INR 3,174 crores were tended by the market. Going forward, we expect the pace of RBI rate hikes to slow down for reasons mentioned above. While liquidity deficit will continue to put pressure on short end rates, given the view of slower rate hikes and the current spread over overnight, passive buy and hold strategies at the front end of the corporate curve make imminent sense. Also, with demand vs supply very much in balance for government securities, long term investors may find favorable risk versus return by investing in this segment of the market.. Market Indicators Security 29th October th September 2010 Month on Month Change Basis Points (bps). Yield % Yield % Policy Rates Reverse Repo Rate Repo Rate Cash Reserve Ratio (CRR) Liquidity Average Reverse Repo RsCrores Average Repo Rscrores Average Call Rate % Government Securities 91 Day T-Bill Day T-Bill Five Year Benchmark Ten Year Benchmark Currency USD/INR Rs % Inflation (% Change Year on Year) Month Ended 30 th Sept 2010 Month Ended 30 th Aug 2010 WPI Corporate Bonds 5 Year AAA Benchmark Month CD Benchmark Year CD Benchmark Interest Rate Swaps 1 Year OIS* Year OIS* * Overnight Index Swap Source : RBI, CCIL, Bloomberg 1

3 IDFC Classic Equity Fund (IDFC - CEF) An Open Ended Equity Fund Nature: Equity Average AUM: ` Crore Fund Manager: Mr. Tridib Pathak Investment objective: The investment objective of the scheme is to seek to generate long term capital growth from a diversified portfolio of predominantly equity and equity related instruments.however there is no assurance that the investment objective of the scheme will be realized. Investment style: The Scheme seeks to achieve outperformance through sector rotation, theme selection, market cap bias and bottom up stock picking. Ideal investment horizon: 3 years or more Entry load : (Plan A & Plan B): Nil Exit load: (Plan A & Plan B): All investment including SIP/Micro SIP/STP/FOF if redeemed / switched out within 365 days from the date of allotment - 1%. No Exit Loads / CDSC will be chargeable in case of switches made between different options. (w.e.f. September 01, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend. Reinvestment facility is available under the Dividend Option. Minimum investment amount ( Plan A & Plan B): `5,000 & in multiples of `1 Additional investment amount: `1 SIP (minimum amount) ( Plan A & Plan B): `1000 Inception Date (Plan A): 9 August 2005 Inception Date (Plan B): 2 April 2009 Statistical Measures: Beta 0.87 R Square 0.95 Standard deviation 8.74% Last 3 dividends (`/ unit): 22-Aug NAV May NAV Oct NAV NAV (`): Growth (A) (B) Dividend (A) (B) Face value (`/ unit): 10 Asset allocation(equity / debt / cash/derivatives):86.26%/23.22% /1.13%/0.05% Fund manager s comment: Run as a well-diversified portfolio, the opportunity for the fund is to capture the breadth of the market across sectors, market capitalizations, styles and themes. The fund has increased exposure to midcaps to around 25% and has maintained higher diversification across sectors. Data as of 29 October 2010 Name in Lac(`) % of NAV ICICI Bank Ltd Mphasis Ltd Union Bank of India Torrent Pharmaceuticals Ltd Jindal Steel & Power Ltd Bharat Heavy Electricals Ltd Corporation Bank BhartiAirtel Ltd Rural Electrification Corp Ltd Jet Airways (India) Ltd Bajaj Auto Ltd Manappuram General Finance and Leasing Ltd Pantaloon Retail (India) Ltd Axis Bank Ltd BGR Energy Systems Ltd Top 15 Equities Other Equity CBLO Certificate of Deposit Fixed Deposits - Security Futures Derivatives Net Current Asset Grand SIP Returns Period Investment Value Scheme Return Benchmark Return % 17.66% 3 year % 26.02% 2 year % 45.39% 1 year % 31.93% Fund Performance under the IDFC-CEF-Growth % 49.11% % 11.41% 12.58% 13.98% 25.99% 29.59% 20.53% 19.84% 17.67% 17.15% month 6 month 1 year 2 year -2.41% 1.38% 3 year 5 year IDFC-CEF Growth BSE 200 Past performance may or may not be sustained in future. Benchmark: BSE 200 ( ) Engineering Services Non - Ferrous Metals Cement Trading Construction Project Industrial Products Oil Retailing Miscellaneous Consumer Durables Transportation Finance Telecom - Services Ferrous Metals Auto Pharmaceuticals Industrial Capital Goods Consumer Non Durables Software Banks 2

4 IDFC Imperial Equity Fund (IDFC - IEF) An Open Ended Equity Fund Data as of 29 October 2010 Nature: Equity Average AUM: ` Crore Fund Manager: Mr. Tridib Pathak (w.e.f.26 April 2010) Investment objective: The investment objective is to seek to generate capital appreciation and/or provide income distribution from a portfolio of predominantly equity and equity related instruments. There is no assurance or guarantee that the objectives of the scheme will be realized. Investment style: The Scheme seeks to invest predominantly in companies based on the potential value unlocking (subsidiary listing), strong growth in domestic demand and emerging sectors in the Indian economy. Ideal investment horizon: 3 years or more Entry load: (Plan A & Plan B): Nil Exit load: (Plan A & Plan B): All Investment including SIP/Micro SIP/STP/FOF if redeemed / switched out within 365 days from the date of allotment - 1%. No Exit Loads / CDSC will be chargeable in case of switches made between different options. (w.e.f. September 01, 2009). In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend. Reinvestment facility is available under the Dividend Option. Minimum investment amount (Plan A & Plan B): `5,000 Additional investment amount: `1 SIP (minimum amount) (Plan A & Plan B: `1,000 Inception Date (Plan A): 16 March 2006 Inception Date (Plan B): 2 April 2009 Statistical Measures: Beta 0.86 R Square 0.96 Standard deviation 8.24% Last 3 dividends (`/ unit): 8-Jun NAV Jun NAV May NAV NAV (`): Growth (A) (B) Dividend (A) (B) Face value (`/ unit): 10 Asset allocation (equity/debt /cash/derivatives): 86.72% / 19.87% / 1.63%/ 0.05 % Fund manager s comment: Imperial fund is a diversified large cap biased fund. The portfolio construction has revolved around selecting well established companies which have high capital efficiency or are moving towards improving their capital efficiency further and are available at reasonable valuations. Name in Lac(`) % of NAV ICICI Bank Ltd Mphasis Ltd Jindal Steel & Power Ltd Bharat Heavy Electricals Ltd I T C Ltd Adani Enterprises Ltd Bank of Baroda Bajaj Auto Ltd Reliance Industries Ltd Indian Oil Corporation Ltd Larsen & Toubro Ltd Oil & Natural Gas Corporation Ltd Dr. Reddy's Laboratories Ltd Tata Consultancy Services Ltd Axis Bank Ltd Top 15 Equities Other Equity Certificate of Deposit Fixed Deposits - Security Futures Derivatives Net Current Asset Grand SIP Returns Period Investment Value Scheme Return Benchmark Return % 16.57% 3 year % 23.17% 2 year % 39.70% 1 year % 31.59% Fund Performance under the IDFC-IEF-Growth 12.20% 12.11% 13.47% 14.01% 27.35% 27.80% 42.19% 44.56% 17.31% 14.43% Engineering Telecom - Services Oil Construction Project Finance & Rankings Trading Industrial Capital Goods Auto Ferrous Metals Consumer Non Durables Petroleum Products Pharmaceuticals Software Banks 6.22% 0.66% 3 month 6 month 1 year 2 year IDFC-IEF Growth Past performance may or may not be sustained in future. Benchmark: S&P CNX Nifty 3 year S&P CNX Nifty ( ) Past performance is no guarantee of future results. For Methodology of Ranking Please refer Page No

5 IDFC Nifty Fund (IDFC - NF) An Open Ended Index Linked Equity Scheme Data as of 29 October 2010 Nature: Equity Average AUM: `5.90 Crore Fund Manager: Mr. Tridib Pathak Investment objective: The investment objective of the scheme is to replicate the S&P CNX Nifty Index by investing in securities of the S&P CNX Nifty Index in the same proportion/weightage. However, there is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns. Investment style: The Scheme will be managed passively with investments in stocks in a proportion that it is as close as possible to the weightages of these stocks in the S&P CNX Nifty Index. The investment strategy would revolve around reducing the tracking error to the least possible through rebalancing of the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections/redemptions from the Scheme. Ideal investment horizon: 3 years or more Entry load: Nil Exit load: Nil Load shall be applicable in case of switches between other equity schemes and IDFC Nifty Fund. Options available: Growth, Dividend, Reinvestment facility is available under the Dividend Option. Minimum investment amount: `500/- & in multiples of `1 Additional investment amount: `1 SIP (minimum amount): `500 Inception Date: 30 April 2010 NAV (`): Growth Dividend Face value (`/ unit): 10 Asset allocation (equity / debt / cash/derivatives):96.71% /3.07 %/ 3.29%/-- Benchmark: S&P CNX Nifty Index SIP Returns Period Investment Value Scheme Return Benchmark Return % 52.49% Name in Lac(`) % of NAV Reliance Industries Ltd Infosys Technologies Ltd ICICI Bank Ltd Larsen & Toubro Ltd I T C Ltd Housing Development Finance Corporation Ltd State Bank of India HDFC Bank Ltd Tata Consultancy Services Ltd Oil & Natural Gas Corporation Ltd BhartiAirtel Ltd Bharat Heavy Electricals Ltd Axis Bank Ltd Tata Motors Ltd Tata Steel Ltd Top 15 Equities Other Equity Futures Net Current Asset Grand Fund Performance under the IDFC NF-Growth % 12.11% 14.34% 14.01% month IDFC-NIFTY Growth Past performance may or may not be sustained in future. Benchmark: S&P CNX Nifty ( ) S&P CNX Nifty Minerals/mining Construction Gas Diversified Cement Telecom - Services Non - Ferrous Metals Industrial Capital Goods Oil Pharmaceuticals Power Ferrous Metals Consumer Non Durables Construction Project Finance Auto Petroleum Products Software Banks 4

6 IDFC Premier Equity Fund (IDFC - PEF) An Open Ended Equity Fund Nature: Equity Average AUM: `1, Crore Fund Manager: Mr. Kenneth Andrade Investment objective: The Scheme shall seek to generate long-term capital growth from an actively managed portfolio of predominantly equity and equity related instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment style: Focus on buying great companies at low valuation with a longer term perspective. The scheme portfolio would seek to acquire, inter alia, small and medium size business with good long term potential, which are available at cheap valuation. Such securities would be identified through disciplined fundamental research keeping in view medium to long term trends in the business environment. The Scheme shall endeavor to accumulate long term investor wealth by opening subscriptions to units during periods when stocks are available at reasonable valuations. By doing so, the fund managers would endeavor to prevent short term money from flowing into the fund which can prove detrimental to the interest of long term investors. Ideal investment horizon: 3 years or more Entry load: (Plan A & Plan B): Nil Exit load: (Plan A & Plan B): All investment including SIP/Micro SIP/STP/FOF if redeemed / switched out within 365 days from the date of allotment - 1%. No Exit Loads / CDSC will be chargeable in case of switches made between different options. (w.e.f. September 01, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend. Reinvestment facility is available under the Dividend Option. Minimum investment amount (Plan A & Plan B): `25,000 Additional investment amount: `1 SIP (minimum amount) (Plan A & Plan B: `2000 Inception Date (Plan A): 28 September 2005 Inception Date (Plan B): 2 April 2009 Statistical Measures: Beta 0.90 R Square 0.88 Standard deviation 9.63% Last 3 dividends (`/ unit): 28-Apr NAV March 2010 A 2.40 NAV March 2010 B 2.00 NAV NAV (`): Growth (A) (B) Dividend (A) (B) Face value (`/ unit): 10 Asset allocation (equity/debt/cash/derivatives): 88.03% / 8.43% / 0.91%/-- Fund manager s comment: The portfolio has attempted to identify emerging themes and segment leaders which have a strongcorrelation to the growth of the economy. The fund is invested close to 90% with the balance incash. The investment process and diversification have not undergone any radical shifts. The focusremains on buying into emerging businesses and taking a call on the entrepreneur/organization toride through successfully the growth curve of the business cycle. Data as of 29 October 2010 Name in Lac(`) % of NAV Coromandel Fertilisers Ltd Shriram Transport Finance Co. Ltd Asian Paints Ltd GlaxoSmithkline Consumer Healthcare Ltd Sun TV Network Ltd Bajaj Electricals Ltd IRB Infrastructure Developers Ltd Spicejet Ltd Page Industries Ltd Torrent Power Ltd Pantaloon Retail (India) Ltd Petronet LNG Ltd MothersonSumi Systems Ltd Emami Ltd Bata India Ltd Top 15 Equities Other Equity Certificate of Deposit Fixed Deposits - Security Floating Rate Note Futures Mutual Fund Units: Debt Non Convertible Debentures Net Current Asset Grand SIP Returns Period Investment Value Scheme Return Benchmark Return % 17.51% 5 year % 17.53% 3 year % 26.59% 2 year % 47.07% 1 year % 32.89% Fund Performance under the IDFC-PEF-Growth 67.70% 52.58% 50.21% 10.64% 11.54% 20.83% 14.12% 30.94% 16.72% 32.18% 20.24% 28.15% 17.59% % 3 month 6 month 1 year 2 year 3 year 5 year IDFC-PEF Growth BSE 500 Past performance may or may not be sustained in future. Benchmark: BSE 500 & Rankings ( ) Past performance is no guarantee of future results. For Methodology of Ranking Please refer Page No. 50. Industrial Products Miscellaneous Software Auto Ancillaries Retailing Textile Products Gas Media & Entertainment Finance Fertilisers Power Consumer Durables Transportation Consumer Non Durables 5

7 IDFC Arbitrage Fund (IDFC - AF) An Open Ended Equity Fund Nature: Equity & Equity Derivatives Average AUM: `91.65 Crore Fund Manager: Mr. Ritesh Kumar & Mr Ashwin Patni Investment objective: The investment objective is to generate capital appreciation and income by predominantly investing in arbitrage opportunity in the cash and the derivative segments of the equity markets and the arbitrage opportunity available within the derivative segments and by investing the balance in debt and money market instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment style: The Scheme seeks to capture the Cost of Carry by executing simultaneous buy (in the cash market) and sell (In the futures) trades. The amount not so invested is invested in FDs and money market instruments. Ideal investment horizon: 1 year or more Entry load: Nil Exit load: 0.25% in both Plan A and Plan B, if redemption / switch is requested within 30 days from the date of purchase, during ongoing period. (w.e.f. August 24, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Plans available: Plan A (Regular), Plan B (Institutional) Options available: Growth, Dividend & Dividend Sweep (w.e.f. 16-Nov-2009) Minimum investment amount: Plan A: `5,000, Plan B: `25,00,000 (w.e.f. July 6, 2009) Additional investment amount: `1 SIP (minimum amount): NA Inception Date: 21 December 2006 Statistical Measures: Standard deviation 0.30% Dividend frequency:, subject to availability of distributable surplus Last 8 dividends (`/ unit): 26-Aug-09 B 0.02 NAV Nov-09 A 0.06 NAV Nov-09 B 0.06 NAV Dec-09 A 0.02 NAV Dec-09 B 0.02 NAV Jan-10 A 0.02 NAV Jan-10 B 0.02 NAV Feb-10 A 0.02 NAV Feb-10 B 0.02 NAV Mar-10 A 0.01 NAV Mar-10 B 0.01 NAV Apr-10 B 0.01 NAV May-10 B 0.01 NAV Jun-10 B 0.01 NAV Jul-10 B 0.01 NAV NAV (`): Plan A (Regular) Growth Plan A (Regular) Dividend Plan B (Institutional) Growth Plan B (Institutional) Dividend Face value (` / unit): 10 Asset allocation (equity / debt / cash): 65.76%/-48.73%/16.63% Fund manager s comment: Cash-future spreads remained attractive in October. The fund was able to successfully roll-over its futures positions into November. Name in Lac(`) Data as of 29 October 2010 % of NAV Value of Futures Dena Bank Bajaj Hindusthan Ltd Reliance Infrastructure Ltd Mercator Lines Ltd Firstsource Solutions Ltd Vijaya Bank Cairn India Ltd Rolta India Ltd Nagarjuna Construction Co. Ltd IVRCL Infrastructures & Projects Ltd Indiabulls Real Estate Ltd Areva T & D India Ltd Gujarat State Petronet Ltd Chambal Fertilizers & Chemicals Ltd Ispat Industries Ltd Kotak Mahindra Bank Ltd Jindal Steel & Power Ltd Pantaloon Retail (India) Ltd LIC Housing Finance Ltd Hindustan Petroleum Corporation Ltd Tata Steel Ltd Reliance MediaWorks Ltd Television Eighteen India Ltd GMR Infrastructure Ltd Praj Industries Ltd Hexaware Technologies Ltd Moser Baer India Ltd Equities Yes Bank Ltd Fixed Deposits - Security Net Current Asset Grand Fund Performance under the IDFC-AF-Growth % 4.34% 4.36% 5.29% 5.25% 6.09% 6.22% 6.45% % 1.46% 3 month 2.88% 2.61% 6 month 1 year IDFC-AF Growth Past performance may or may not be sustained in future. Benchmark: Crisil Liquid Fund Index 2 year 3 year Crisil Liquid Fund Index ( ) Hardware Petroleum Products Finance Retailing Fertilisers Gas Oil Transportation Power Consumer Non Durables Industrial Capital Goods Media & Entertainment Construction Project Construction Ferrous Metals Software Banks 6

8 IDFC Equity Fund (IDFC - EF) An Open Ended Equity Scheme Nature: Equity Average AUM: ` Crore Fund Manager: Mr. Kenneth Andrade Investment objective: The investment objective of the scheme is to seek to generate capital growth from a portfolio of predominantly equity and equity related instruments(including Equity derivatives). The scheme may also invest in debt and money market instruments to generate reasonable income. However there is no assurance that the investment objective of the scheme will be realized. Investment Strategy (in brief): The Scheme intends to invest in companies which are involved in or are in the process of setting up various business activities, ventures, projects or other commercial endeavours The Scheme would invest in equities in the IPOs subsequent public offers or in the secondary market, other equity related instruments (including derivatives), benefit out of the cash and derivative markets arbitrage, opportunity and invest the residual sums in debt and money market instruments. For details please refer to the Offer document. The scheme will endeavour to generate capital appreciation through investing in equities by interalia adopting the mode of applying IPOs or subsequent public offering made by companies, if well-priced IPOs are not available the funds collected will be invested in other investment avenues such as index, cash futures arbitrage. Nifty spot futures arbitrage etc. as per the investment strategy of the scheme. The Scheme will endeavour to generate capital appreciation through investing in equities and equity related instruments by inter alia adopting the mode of applying for Initial Public Offerings (IPOs) or subsequent public offerings made by companies. The Scheme envisages to generate reasonable returns by investing in such equities. The balance equity allocations by the fund will be closely in line with Nifty. However the fund will seek to take on some deviation from Nifty by making smaller allocations to a range of arbitrage strategies in the equity and derivative markets. Investment style: The Scheme endeavours to generate capital appreciation through investing in equities by inter alia adopting the mode of applying for IPOs or subsequent public offering made by companies. If well priced IPOs are not available the funds collected may be invested in the index, hence generating market return from the index and the alpha from the premium on listing of IPOs. Entry load: (Plan A & Plan B): Nil Exit load: (Plan A & Plan B): All Investment including SIP/Micro SIP/STP/FOF if redeemed / switched out within 365 days from the date of allotment - 1%. No Exit Loads / CDSC will be chargeable in case of switches made between different options. (w.e.f. September 01, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend Minimum investment amount (Plan A & Plan B): `5,000 (w.e.f. July 6, 2009) Additional investment amount: `1 SIP (minimum amount) (Plan A & Plan B): `1000 (w.e.f. July 6, 2009) Inception Date (Plan A): 9 June 2006 Inception Date(Plan B): 6 July 2009 Statistical Measures: Beta (BSE 200) 0.98 R Square (BSE 200) 0.91 Beta (Nifty) 0.97 R Square (Nifty) 0.91 Standard deviation 8.03% Last 3 dividends (`/ unit): 28-Jul NAV May NAV NAV (`): Growth (A ) (B) Dividend (A ) (B) Face value (` / unit): 10 Asset allocation (equity/debt/cash/derivatives): 74.42% / 46.87% / 3.91% /-- Fund manager s comment: The fund is currently invested in the Nifty stocks. The fund aims to generate alpha by participating in primary market issuances. As a strategy, IDFC Equity Fund follows a 100% invested philosophy. We have activated our participation in primary issuances of recent origin. SIP Returns Period Investment Value Scheme Return Benchmark Return % 16.83% 3 year % 23.56% 2 year % 39.95% 1 year % 31.59% Data as of 29 October 2010 Name in Lac(`) % of NAV Reliance Industries Ltd Infosys Technologies Ltd ICICI Bank Ltd Larsen & Toubro Ltd I T C Ltd Housing Development Finance Corporation Ltd State Bank of India HDFC Bank Ltd Tata Consultancy Services Ltd Oil & Natural Gas Corporation Ltd BhartiAirtel Ltd Bharat Heavy Electricals Ltd Axis Bank Ltd Tata Motors Ltd Tata Steel Ltd Top 15 Equities Other Equity CBLO Certificate of Deposit Fixed Deposits - Security Floating Rate Note Futures Net Current Asset Grand Fund Performance under the IDFC-EF-Growth 48.01% 49.37% % 12.11% 3 month 14.29% 14.01% 6 month 27.41% 27.80% 1 year IDFC-EF Growth Past performance may or may not be sustained in future. Benchmark: S&P CNX Nifty 2 year 0.03% 0.66% 3 year S&P CNX Nifty 12.93% 18.40% ( ) Construction Minerals/mining Gas Cement Diversified Telecom - Services Non - Ferrous Metals Industrial Capital Goods Oil Pharmaceuticals Power Ferrous Metals Consumer Non Durables Construction Project Auto Finance Petroleum Products Software Banks 7

9 IDFC Tax Saver (ELSS) Fund (IDFC TS (ELSS) Fund) A 10 Year Close Ended Equity Linked Saving Scheme Nature: Equity Average AUM: ` Crore Fund Manager: Neelotpal Sahai. w.e.f. 22 Sep, 2010 Investment objective: The investment objective is to seek to generate long term capital growth from a diversified portfolio of predominantly equity and equity related instruments. There can be no assurance that the investment objective of the scheme will be realised. Investment style: The Scheme will invest in well- managed growth companies that are available at reasonable value. Companies would be identified through a systematic process of forecasting earnings based on a deep understanding of the industry growth potential and interaction with company management. Entry load: Nil Exit load: Nil (w.e.f. 4th September, 2009) Options available: Growth, Dividend Minimum investment amount: ` 500 Additional investment amount: `500 Inception Date: 15 March 2007 Statistical Measures: Beta 0.82 R Square 0.92 Standard deviation 9.08% Dividends frequency: 20-Jan NAV Mar NAV NAV (`): Growth Dividend Name Data as of 29 October 2010 Market value in Lac (`) % of NAV Axis Bank Ltd Larsen & Toubro Ltd Central Bank of India Tata Consultancy Services Ltd Vardhman Textiles Ltd Allahabad Bank Rural Electrification Corp Ltd Infosys Technologies Ltd Emami Ltd BGR Energy Systems Ltd Hitachi Home & Life Solutions (India) Ltd Jindal Steel & Power Ltd Siemens Ltd Sun TV Network Ltd Bharti Airtel Ltd Top 15 Equities Other Equities Certificate of Deposit Net Current Asset Grand Face value (` / unit): 10 Asset allocation (equity / debt / cash): 95.74% / 5.05% / -0.78% Fund manager s comment: The focus is to invest in long term growth stocks at reasonable price. The portfolio is an diverse mix of companies across sectors and is agnostic to capitalization bias. Given the plethora of opportunities which is there in domestic economy, the fund seeks to invest in companies with strong track record of execution, high operating leverage and reasonable valuations. SIP Returns Period Investment Value Scheme Return Benchmark Return % 21.00% 3 year % 26.02% 2 year % 45.39% 1 year % 31.93% Fund Performance under the IDFC TS (ELSS) Growth % 49.11% % 29.59% % 11.41% 15.50% 13.98% 14.04% 15.72% 3 month 6 month 1 year Past performance may or may not be sustained in future. Benchmark : BSE year 1.74% 1.38% 3 year IDFC-TSF-ELSS Growth BSE 200 ( ) Pharmaceuticals Auto Ancillaries Telecom - Services Consumer Durables Finance Textiles - Cotton Construction Project Ferrous Metals Media & Entertainment Auto Consumer Non Durables Software Industrial Capital Goods Banks 8

10 IDFC Arbitrage Plus Fund (IDFC - APF) An Open Ended Equity Fund Nature: Equity Derivatives Average AUM: `55.36 Crore Fund Manager: Mr. Ritesh Kumar & Mr. Ashwin Patni Investment objective: The investment objective of the scheme is to generate income (absolute to low volatility returns) by taking advantage of opportunities in the cash and the derivative segments of the equity markets including the arbitrage opportunities available within the derivative segment, by using other derivative based strategies and by investing the balance in debt and money market instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment style: The fund aimed to generate absolute returns by investing in trades in the equity and derivative markets. The trades can consist of cash-futures arbitrage as well as relative value (such as pair trades and corporate event- based strategies) and derivatives strategies. Ideal investment horizon: 1 year or more Entry load: Nil Exit load: IDFC- APF - Plan A & Plan B : 0.50% of NAV on investors who purchase/switch in and seek to redeem/switch out such units within 365 days such from the date of effecting such purchase/switch in. (w.e.f. August 24, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend & Dividend Sweep (w.e.f. 16-Nov-2009) Minimum investment amount : Plan A : `5,000, Plan B: `25,00,000 (w.e.f. July 6, 2009) Additional investment amount: `1 Inception Date: 9 June 2008 Statistical measures: Standard deviation 0.68% Last 3 dividends (` / unit): 11-May-10 A 0.02 NAV May-10 B 0.02 NAV June-10 A 0.01 NAV June-10 B 0.01 NAV Jul-10 A 0.01 NAV Jul-10 B 0.01 NAV Dividend frequency:, subject to availability of distributable surplus NAV (`): Growth (A) (B) Dividend (A) (B) Face value (` / unit): 10 Asset allocation (equity / debt / cash): / / Fund manager s comment: Cash-future spreads remained attractive in October. The fund was able to successfully roll-over its arbitrage positions into November. The fund also had positions in corporate action and pair trades. Name in Lac(`) Data as of 29 October 2010 % of NAV Value of Futures Bajaj Hindusthan Ltd IVRCL Infrastructures & Projects Ltd Dena Bank Mercator Lines Ltd Reliance Infrastructure Ltd Triveni Engineering & Industries Ltd Pantaloon Retail (India) Ltd Tata Teleservices (Maharashtra) Ltd Hindustan Construction Co. Ltd Tata Steel Ltd Indiabulls Real Estate Ltd GMR Infrastructure Ltd Vijaya Bank Jindal Saw Ltd Nagarjuna Construction Co. Ltd Housing Development and Infrastructure Ltd Firstsource Solutions Ltd K.S. Oils Ltd Areva T & D India Ltd Unitech Ltd Tata Motors Ltd Chambal Fertilizers & Chemicals Ltd Kotak Mahindra Bank Ltd Reliance Natural Resources Ltd DLF Ltd Equities Tata Motors Ltd Pair Trade Yes Bank Ltd Fixed Deposits - Security ICICI Bank Ltd Non Convertible Debentures CBLO Net Current Asset Grand Fund Performance under the IDFC-APF-Growth % 4.34% 4.87% 5.29% 5.72% 5.81% % 2.48% 2.61% % 3 month 6 month IDFC-APF Growth Past performance may or may not be sustained in future. Benchmark: Crisil Liquid Fund Index 1 year 2 year Crisil Liquid Fund Index ( ) Gas Fertilisers Auto Industrial Capital Goods Software Telecom - Services Retailing Power Transportation Ferrous Metals Construction Project Banks Consumer Non Durables Construction 9

11 IDFC Small & Midcap Equity (SME) Fund (IDFC SMEF) An Open Ended Equity Scheme Data as of 29 October 2010 Nature: Equity Average AUM: `1, Crore Fund Manager: Mr. Kenneth Andrade Investment objective: The investment objective is to seek to generate capital appreciation from a diversified portfolio of equity and equity related instruments. The Scheme will predominantly invest in small and midcap equity and equity related instruments. Small and Midcap equity and equity related instruments will be the stocks included in the CNX Midcap index or equity and equity related instruments of such companies which have a market capitalization lower than the highest components of CNX Midcap Index. The Scheme may also invest in stock other than mid cap stocks (i.e. in stocks, which have a market capitalization of above the market capitalization range of the defined small midcap stocks) and derivatives. On defensive considerations, the Scheme may also invest in debt and money market instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment Style: The Scheme will predominantly invest in small and mid-cap equity and equity related instruments. Small and Mid-cap equity and equity related instruments will be the stocks included in the CNX Mid-Cap Index or equity and equity related instruments of such companies which have a market capitalization lower than the highest components of CNX Mid-Cap Index. The scheme would predominantly create a portfolio of emerging business and companies that are aspiring leaders in their respective field of operations. Some part of the portfolio would be in stocks/ companies that do not have a significant history of being listed. Ideal Investment Horizon: More than 3 years Entry Load: Nil Exit load: The scheme is converted into open ended scheme w.e.f. September 11, W.e.f. September 11, 2009 Exit Load - If redeemed within 365 days from the date of purchase(s) applying First in First out basis (including purchase made through the STP/SIP) -1.00%.No exit load /CDSC will be chargeable in case of switches made between different options of the schemes. In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund (w.e.f. October 12, 2009) Options available: Growth, Dividend Minimum investment amount: `5,000 SIP (minimum amount): `1000 Additional investment amount: `1 Inception Date: 7 March 2008 Statistical Measures: Beta 0.71 R Square 0.87 Standard deviation 6.28% Last 3 dividends (`/ unit): 29-Sep NAV Apr NAV NAV (`): Growth Dividend Face value (`/ unit): 10 Asset allocation (equity / debt / cash/derivatives): 88.40% /10.26% / -0.95/-- Fund manager s comment: The fund philosophy is to capture the potential of the small and mid-cap companies in the country. The underlying companies in the portfolio are growth-oriented. At a second level the fund seeks to optimize valuations in this space. With markets buoyant the portfolio shifts have been reasonably aggressive in tune with the changing valuations. The strategy is to remain invested in smaller companies with low business risk and extreme valuation comfort SIP Returns Period Investment Value Scheme Return Benchmark Return % 49.73% 2 year % 62.94% 1 year % 41.34% Fund Performance under the IDFC SMEF-Growth Name in Lac(`) % of NAV Mahindra & Mahindra Financial Services Ltd Central Bank of India Shree Renuka Sugars Ltd Vardhman Textiles Ltd Tulip Telecom Ltd Castrol (India) Ltd Exide Industries Ltd Siemens Ltd Union Bank of India Bajaj Auto Ltd Titan Industries Ltd Venky's (India) Ltd Vijaya Bank Mandhana Industries Ltd Apollo Tyres Ltd Top 15 Equities Other Equity Certificate of Deposit Fixed Deposits - Security Futures Mutual Fund Units: Debt Non Convertible Debentures Net Current Asset Grand % 66.27% % 11.23% 3 month 17.07% 16.12% 6 month 46.76% 1 year 42.40% IDFC-SMC-EF Growth Past performance may or may not be sustained in future. Benchmark: CNX Midcap 2 year CNX Midcap 29.98% 14.77% ( ) Pesticides Fertilisers Construction Project Hardware Textiles - Synthetic Construction Telecom - Equipment Software Miscellaneous Industrial Capital Goods Petroleum Products Textile Products Transportation Telecom - Services Auto Ancillaries Media & Entertainment Textiles - Cotton Auto Finance Banks Consumer Non 10

12 IDFC Strategic Sector (50-50) Equity Fund (IDFC SS (50-50)-EF) An Open Ended Equity Fund Nature: Equity Average AUM: `35.04 Crore Fund Manager: Mr. Kenneth Andrade Investment objective: The investment objective of the scheme is to seek to generate long-term capital appreciation by investing in Equity and Equity related instruments. The investment objective of the fund shall be achieved by investing up to fifty percent of the assets of the scheme in a chosen sector (sector specific exposure) while the balance amount may be invested in companies across market capitalizations and across sectors (diversified exposure). The scheme may also invest in debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns. Ideal investment horizon: 3 years or more Entry Load:(Plan A & Plan B): Nil Exit Load:(Plan A & Plan B): All investment including SIP/Micro SIP/STP/FOF if redeemed / switched out within 365 days from the date of allotment - 1%. No Entry / Exit Loads / CDSC will be chargeable in case of switches made between different options of the Scheme. (w.e.f. September 01, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend. Reinvestment facility is available under the Dividend Option. Minimum investment amount (Plan A & Plan B): `5,000 Additional investment amount: `1 SIP (minimum amount) ( Plan A & Plan B): `1000 Inception Date (Plan A): 3 October 2008 Inception Date (Plan B): 2 April 2009 Statistical Measures: Beta 0.78 R Square 0.92 Standard deviation 7.14% Dividend frequency: NA NAV (`): Growth (A) (B) Dividend (A) (B) Face value (`/ unit): 10 Asset allocation (equity / debt / cash/derivatives): 84.90% /18.39% /6.57%/-- Fund manager s comment: The fund is built around allocating 50% of its invested portfolio in one sector. The current sector concentration is around Banking and Financials. Financials is a direct play on the Indian economy which is on a sure and stable path of recovery. Credit growth is picking up, margins are expanding, NPA risk is controlled and valuations are commensurate to growth. Data as of 29 October 2010 Name in Lac(`) % of NAV Reliance Industries Ltd ICICI Bank Ltd Bank of Baroda Infosys Technologies Ltd Central Bank of India Axis Bank Ltd Larsen & Toubro Ltd HDFC Bank Ltd State Bank of India I T C Ltd Rural Electrification Corp Ltd Jammu & Kashmir Bank Ltd Tata Consultancy Services Ltd Oil & Natural Gas Corporation Ltd BhartiAirtel Ltd Top 15 Stocks Other Equity Certificate of Deposit Futures Net Current Asset Grand SIP Returns Period Investment Value Scheme Return Benchmark Return % 38.47% 1 year % 31.59% Fund Performance under the IDFC Strategic Sector (50-50) Equity Fund-Growth % 44.56% 31.88% 15.79% 12.11% 19.97% 14.01% 27.80% 25.67% 24.56% month 6 month 1 year IDFC-SSEF Growth Past performance may or may not be sustained in future Benchmark: S&P CNX Nifty 2 year S&P CNX Nifty ( ) Minerals/mining Construction Gas Diversified Cement Telecom - Services Non - Ferrous Metals Industrial Capital Goods Oil Pharmaceuticals Power Ferrous Metals Finance Consumer Non Durables Construction Project Auto Petroleum Products Software Banks 11

13 IDFC Tax Advantage (ELSS) Fund (IDFC TA (ELSS) Fund) An Open Ended Equity Linked Saving Scheme with Lock in Period of 3 Years Data as of 29 October 2010 Nature: Equity Average AUM: ` Crore Fund Manager: Mr. Neelotpal Sahai. w.e.f. 22 Sep, 2010 Investment objective: The investment objective is to seek to generate long term capital growth from a diversified portfolio of predominantly equity and equity related securities. There can be no assurance that the investment objective of the scheme will be realized. Investment style: The Scheme will invest in well-managed growth companies that are available at reasonable value. Companies would be identified through a systematic process of forecasting earnings based on a deep understanding of the industry growth potential and interaction with company management. Entry load: Nil Exit load: Nil (w.e.f. September 04, 2009) Options available: Growth, Dividend. Reinvestment facility is available under the Dividend Option. Minimum investment amount: `500 Additional investment amount: `500 SIP (minimum amount): `500 Inception Date: 26 December 2008 Statistical Measures: Beta 0.68 R Square 0.87 Standard deviation 6.69% Last 3 dividends (`/ unit): 20-Jan NAV Mar-10 1 NAV NAV (`): Growth Dividend Face value (`/ unit): 10 Asset allocation (equity / debt / cash/derivatives): 96.64% /3.61 %/-0.25%/-- Fund manager s comment: The focus is to invest in long term growth stocks at reasonable price. The portfolio is a diverse mix of companies across sectors and is agnostic to capitalization bias. Given the plethora of opportunities which is there in domestic economy, the fund seeks to invest in companies with strong track record of execution, high operating leverage and reasonable valuations. Name in Lac(`) % of NAV ICICI Bank Ltd Axis Bank Ltd Central Bank of India Larsen & Toubro Ltd Vardhman Textiles Ltd Infosys Technologies Ltd Tata Consultancy Services Ltd K.P.R. Mill Ltd Ashok Leyland Ltd Allahabad Bank Rural Electrification Corp Ltd Siemens Ltd Bharat Heavy Electricals Ltd Eros International Media Ltd BGR Energy Systems Ltd Top 15 Equities Other Equity Certificate of Deposit Net Current Asset Grand SIP Returns Period Investment Value Scheme Return Benchmark Return % 40.36% 1 year % 31.93% Fund Performance under the IDFC TA (ELSS) -Growth % 56.39% 13.69% 11.41% 17.22% 13.98% 40.48% 29.59% month 6 month 1 year IDFC-TAF Growth BSE 200 Past performance may or may not be sustained in future Benchmark: BSE 200 ( ) Textiles - Synthetic Industrial Products Pharmaceuticals Telecom - Services Consumer Durables Finance Textile Products Ferrous Metals Construction Project Media & Entertainment Textiles - Cotton Auto Software Industrial Capital Goods Consumer Non Durables Banks 12

14 IDFC India GDP Growth Fund (IDFC - IGGF) An Open Ended Equity Scheme Nature: Equity Average AUM: `52.40 Crore Fund Manager: Mr. Tridib Pathak Investment objective: The investment objective of the scheme is to seek to generate long-term capital appreciation by investing in Equity and Equity related instruments. The scheme aims to capture the growth in India's Gross Domestic Product (GDP). The scheme would endeavour to represent the growth in GDP by capturing the growth in the constituents of the GDP. The scheme may also invest in debt and money market instruments. There is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns. Investment style: The Scheme will invest in well- managed growth companies that are available at reasonable value. Companies would be identified through a systematic process of forecasting earnings based on a deep understanding of the industry growth potential and interaction with company management. Entry Load: Nil Exit load: All Investment including SIP/Micro SIP/STP/FOF if redeemed / switched out within 365 days from the date of allotment - 1%. No Exit Loads / CDSC will be chargeable in case of switches made between different options. (w.e.f. September 01, 2009) In case of Switches, Exit load shall be NIL for all switch transactions between equity schemes of IDFC Mutual Fund. (w.e.f. October 12, 2009.) Options available: Growth, Dividend. Reinvestment facility is also available under the dividend option. Minimum investment amount: `5000 Additional investment amount: `1 SIP (minimum amount): `2000 Inception Date: 11 March 2009 Statistical Measures: Beta 0.45 R Square 0.62 Standard deviation 5.16% Last 3 dividends (`/unit): 31-May NAV NAV (`): Growth Dividend Face value (`/ unit): 10 Asset allocation (equity / debt / cash/derivatives): 86.60% /23.51% /1.32%/0.05% Fund manager s comment: The fund is benchmarked to the components of India s GDP in the proportion of the contribution of each component to GDP growth. The fund is invested mainly in the services sector, followed by industrials and then agriculture. Around 60% of the fund s portfolio is currently invested in midcap stocks. Data as of 29 October 2010 Name in Lac(`) % of NAV Jammu & Kashmir Bank Ltd ICICI Bank Ltd Manappuram General Finance and Leasing Ltd Jet Airways (India) Ltd Mphasis Ltd Torrent Pharmaceuticals Ltd Oriental Bank of Commerce Pantaloon Retail (India) Ltd VA Tech Wabag Adani Enterprises Ltd Corporation Bank Talwalkars Better Value Fitness Ltd Swaraj Mazda Ltd Whirlpool Of India Ltd United Phosphorous Ltd Top 15 Equities Other Equity CBLO Fixed Deposits - Security Futures Derivatives Net Current Asset Grand SIP Returns Period Investment Value Scheme Return Benchmark Return % 30.33% 1 year % 32.89% Fund Performance under the IDFC-GDP-Growth % % 30.94% 43.50% % 11.54% 3 month 18.37% 14.12% 6 month 1 year IDFC-GDP Growth BSE 500 Past performance may or may not be sustained in future. Benchmark: BSE 500 ( ) Non - Ferrous Metals Industrial Products Media & Entertainment Construction Hardware Industrial Capital Goods Pesticides Leisure Facilities Trading Engineering Services Consumer Durables Retailing Pharmaceuticals Transportation Miscellaneous Auto Software Banks 13

15 IDFC Super Saver Income Fund Investment Plan (IDFC SSIF-IP) An Open Ended Income Fund Nature: Debt Average AUM: ` Crore Fund Manager: Mr. Suyash Choudhary (w.e.f. 15 Oct 2010) Investment objective: Seek to generate stable returns by creating a portfolio that is invested in good quality fixed income and money market securities. However there is no assurance that the investment objective of the scheme will be realized. Investment Style: The Scheme seeks to invest in a mix of government securities and highly rated corporate bonds and aims to generate stable long-term returns through mix of accrual income and capital appreciation. Ideal investment horizon: 1 year or more Entry load: Nil Exit load: IDFC-SSIF-IP - Plan A, Plan B, Plan C & Plan F : 1.00% of NAV on investors who purchase/switch in and seek to redeem/switch out such units within 365 days such from the date of effecting such purchase/switch in. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options will not be levied an exit load. Options available: Growth, Dividend & Dividend Sweep Minimum investment amount: `5,000 and in multiples of ` 1 in Plan A (Regular Plan), ` 25 Lakh and in multiples of ` 1 in Plan B (Institutional Plan), ` 5 Crores and in multiples of ` 1 in Plan C, ` 5,000 and in multiples of ` 1 in Plan D. Additional investment amount: `1 SIP (minimum amount): in Plan A `1,000 Inception date: 14 July 2000 Statistical Measures: Standard deviation 1.60% Modified duration 5.23 years Dividend frequency: Quarterly, Half Yearly, Annually Last 3 dividends (`/ unit): Date NAV Freq. Other I & H IDFC-SSIF-IP-Plan A 30-Jun Quarterly Mar Quarterly Jun Quarterly Sep Half Yearly Sep Half Yearly Mar Half Yearly Mar Annual IDFC-SSIF-IP-Plan B 30-Jun Quarterly Dec Quarterly IDFC-SSIF-IP-Plan C 30-Jun Quarterly Dec Quarterly NAV (`): (As on 29 th Oct 2010) Plan A Growth Plan A Dividend Annual Plan A Dividend Quarterly Plan A Dividend Half Yearly Plan B Growth Plan B Dividend Quarterly Plan C Growth Plan C Dividend Quarterly Plan F Growth Face value (` / unit): 10 Fund manager's comment: The fund is invested in a mix of government bonds and corporate bonds to enhance liquidity and enhance accrual. The fund will actively monitor the dynamic interest rate and credit spread environment to optimize performance. Benchmark: Crisil Composite Bond Fund Index (CCBFI) Data as of 31 October 2010 Name % of NAV Dena Bank P Certificate of Deposit % GOI (MD ) SOV % GOI 2027 (MD 02/08/2027) SOV % GOI 2022 (M/D 21/09/2022) SOV % GOI (MD 02/07/2040) SOV 8.72 Govt Securities (GSE) Reliance Utilities & Power Pvt.Ltd. CAREAAA HDFC Bank Ltd. AAA 5.91 Reliance Industries Ltd. AAA 3.53 Power Grid Corporation Ltd. AAA 1.80 Non Convertible Debentures Net Current Asset Grand Fund Performance as on 29 th Oct 2010 under the IDFC-SSIF-IP-Growth Govt Securities (GSE): 60.16% 2 Non Convertible Debentures: 21.97% 3 Net Current Asset: 16.15% 4 Certificate of Deposit: 1.73% 7.80% 7.58% 8.13% 7.27% 8.29% 5.32% 6.02% 5.52% & Rankings 3.63% Past performance is no guarantee of future results. For Methodology of Ranking Please refer Page No year 2 year 3 year 5 year (14/07/2000) IDFC-SSIF-IP Growth CRISIL Composite Bond Fund Index Past performance may or may not be sustained in future 14

16 IDFC Dynamic Bond Fund (IDFC DBF) An Open Ended Income Fund Data as of 31 October 2010 Nature: Debt Average AUM: `86.05 Crore Fund manager: Mr. Suyash Choudhary (w.e.f. 15 Oct 2010) Investment objective: Seek to generate optimal returns with high liquidity by active management of the portfolio; by investing in high quality money market & debt instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment Style: The Scheme seeks to invest in a mix of government securities and highly rated corporate bonds and seeks to generate returns by actively managing the interest rate volatility. Ideal investment horizon: 1 year or more Entry load: Nil Exit load: IDFC-DBF - Plan A & Plan B: Nil. (w.e.f. August 24, 2009) Options available: Growth, Dividend & Dividend Sweep (w.e.f. 16-Nov-2009) Minimum investment amount: `5,000 and in multiples of `1 in Plan A (Regular Plan), `25 Lakh and in multiples of `1 in plan B (Institutional Plan). (w.e.f. July 6, 2009) Additional investment amount: `1 SIP (minimum amount): in Plan A `1,000 Inception date: 25 June 2002 Statistical Measures: Standard deviation 1.65% Modified duration 5.85 Years Dividend frequency: Quarterly & Annually Last 3 dividends (`/ unit): Date NAV Freq. Other I & H IDFC- DBF - Plan A 31-Dec Quarterly Mar Quarterly Jun Quarterly Mar Annual IDFC- DBF - Plan B 6-Jul Annual NAV (`): (As on 29 th Oct 2010) Plan A Growth Plan A Dividend Annual Plan A Dividend Quarterly Plan B Growth Plan B Dividend Name % of NAV 7.99% GOI (MD ) SOV % GOI 2027 (MD 02/08/2027) SOV % GOI 2022 (M/D 21/09/2022) SOV Govt Securities (GSE) Days Tbill (MD 26/11/2010) SOV 1.17 Treasury Bills 1.17 Net Current Asset Grand Face value (`/ unit): 10 Fund manager's comment: The fund is preferring investments in government securities given current that corporate spreads are quite low and basis our expectation that demand versus supply is evenly matched for government bonds. The fund will move dynamically between cash, government bonds and corporate bonds to optimize performance. Benchmark: Crisil Composite Bond Fund Index (CCBFI) Govt Securities (GSE): 82.71% 2 Net Current Asset: 16.12% 1 3 Treasury Bills: 1.17% Fund Performance as on 29 th Oct 2010 under the IDFC-DBF-Growth 7.85% 7.58% 8.67% 7.99% 7.61% & Rankings 5.32% 6.02% 5.52% 5.86% 2.56% Past performance is no guarantee of future results. For Methodology of Ranking Please refer Page No year 2 year 3 year 5 year ( ) IDFC-DBF Growth CRISIL Composite Bond Fund Index Past performance may or may not be sustained in future. 15

17 IDFC Super Saver Income Fund Medium Term (IDFC SSIF-MT) An Open Ended Income Fund Data as of 31 October 2010 Nature: Debt Average AUM: ` Crore Fund manager: Mr. Anupam Joshi Investment objective: Seek to generate stable returns with a low risk strategy by investing in good quality fixed income securities and money market securities. However there is no assurance that the investment objective of the scheme will be realized. Investment Style: The Scheme seeks to invest in a mix of government securities and highly rated corporate bonds and aims to generate stable longterm returns through mix of accrual income and capital appreciation. Ideal investment horizon: 6 months or more Entry load: Nil Exit load: IDFC-SSIF-MT - Plan A, Plan B & Plan F : 0.50% of NAV shall be the exit load payable by investors who purchase / switch in and seek to redeem / switch out such units within 182 days from the date of effecting such purchase / switch in. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options will not be levied an exit load. Options available: Growth, Dividend, Dividend Sweep& Dividend Payout & Reinvestment option. Minimum investment amount: `5,000 and in multiples of `1 in Plan A (Regular Plan), `25 Lakh and in multiples of `1 in Plan B (Institutional Plan), `5,000 and in multiples of `1 in Plan C Additional investment amount: `1 SIP (minimum amount): in Plan A `1,000 Inception date: 8 July 2003 Statistical Measures: Standard deviation 0.99% Modified duration 1.67 years Dividend frequency: Bi-monthly,, Fortnightly & Daily Last 3 dividends (`/ unit): Date NAV Freq. Other I & H IDFC- SSIF-MT Plan A 29 Oct Daily Oct Daily Oct Daily Sep Bimonthly Oct Fortnightly Oct Fortnightly Sep Fortnightly Oct Sep Aug NAV (`): (As on 29 th Oct 2010) Plan A Growth Plan A Dividend Bimonthly Plan A Dividend Fortnightly Plan A Dividend Plan A Dividend Quarterly Plan A Dividend Daily Plan B Growth Plan B Dividend Plan B Dividend Plan F Growth Plan F Dividend Face value (` / unit): 10 Fund manager's comment: The fund is invested in a mix of medium tenor corporate bonds and government bonds with weights allocated to certificate of deposits to temper duration. Benchmark: CRISIL Short-Term Bond Fund Index (CSTBFI) Name % of NAV Jammu & Kashmir Bank Limited P Canara Bank P Karnataka Bank Ltd A Central Bank of India PR Dena Bank P Punjab National Bank PR State Bank Of Travancore P Oriental Bank of Commerce P Yes Bank Ltd. A Bank of Baroda A Corporation Bank P Federal Bank Ltd. P Certificate of Deposit % GOI (MD ) SOV % GOI (MD 02/08/2022) SOV 3.97 Govt Securities (GSE) Reliance Utilities & Power Pvt.Ltd. CAREAAA 9.62 Infrastructure Development Finance Company Ltd. LAAA 2.47 Sundaram BNP Paribas Home Fina Ltd. CAREAA State Bank of India AAA 1.68 Housing Development Finance Cor Ltd AAA 1.63 L&T FINANCE LTD CAREAA Non Convertible Debentures Net Current Asset 1.35 Grand Fund Performance as on 29 th Oct 2010 under the IDFC-SSIF-MT-Growth Certificate of Deposit: 64.02% 2 Non Convertible Debentures: 17.89% 3 Govt Securities (GSE): 16.74% 4 Net Current Asset: 1.35% 11.02% 9.34% & Rankings 7.77% 7.52% 7.05% 8.26% 6.71% 6.86% 5.96% 4.85% Past performance is no guarantee of future results. For Methodology of Ranking Please refer Page No year 2 year 3 year 5 year ( ) IDFC-SSIF-MT Growth CRISIL Short Term Bond Fund Index Past performance may or may not be sustained in futures 16

18 IDFC Super Saver Income Fund Short Term (IDFC SSIF-ST) An Open Ended Income Fund Data as of 31 October 2010 Nature: Debt Average AUM: ` Crore Fund manager: Mr. Anupam Joshi Investment objective: Seek to generate stable returns with a low risk strategy by investing in good quality fixed income securities and money market securities. However there is no assurance that the investment objective of the scheme will be realized. Investment Style: The Scheme seeks to invest in a mix of government securities and highly rated corporate bonds and aims to generate stable long-term returns through mix of accrual income and capital appreciation. Ideal investment horizon: 3 months or more Entry load: Nil Exit load: Plan A, B, C, D & F: exit load for all investment including SIP/Micro SIP/STP shall be 0.50% of the applicable NAV if redeemed /switched out within 3 months from the date of allotment. Options available: Growth, Dividend & Dividend Sweep Minimum investment amount: ` 5,000 and in multiples of ` 1 in Plan A (Regular Plan), ` 25 Lakh and in multiples of ` 1 in Plan B (Institutional Plan), ` 5 Crores and in multiples ` 1 in Plan C,` 5000 and in multiples of ` 1 in Plan D (MF Plan), ` 5000 and in multiples of ` 1 in Plan F. Additional investment amount: `1 SIP (minimum amount): Plan A ` 1,000 Inception date:14 December 2000 Statistical Measures: Standard deviation 0.73% Modified duration 0.84 years Dividend frequency:, Fortnightly, Quarterly Last 3 dividends (`/ unit): Date NAV Freq. Other I & H IDFC- SSIF-ST Plan A 08 Oct Fortnightly Sep Fortnightly Sep Fortnightly Oct Sep Jun IDFC- SSIF-ST Plan B 02 Jul Fortnightly Jun Fortnightly Jun Fortnightly Sep Jun IDFC-SSIF-ST Plan C 18 Jun Fortnightly Jun Fortnightly May Fortnightly Apr IDFC-SSIF-ST Plan D 22 Oct Fortnightly Oct Fortnightly Sep Fortnightly Sep Aug NAV (`): (As on 29 th Oct 2010) Plan A Growth Plan A Dividend Fortnightly Plan A Dividend Plan B Growth Plan B Dividend Fortnightly Plan B Dividend Plan C Growth Plan C Dividend Fortnightly Plan C Dividend Plan D Growth Plan D Dividend Fortnightly Plan D Dividend Plan F Growth Face value (` / unit): 10 Fund manager's comment: The fund is invested in a mix of certificate of deposits and short duration corporate bonds to optimize performance. The fund is well positioned to take advantage of the current interest rate scenario. Benchmark: CRISIL Short-Term Bond Fund Index (CSTBFI) Name % of NAV CBLO 1.03 Jammu & Kashmir Bank Limited P Syndicate Bank Ltd. PR State Bank Of Bikaner & Jaipur P ICICI Bank Ltd. A IDBI Bank Ltd A Federal Bank Ltd. P Certificate of Deposit Housing Development Finance Cor Ltd A Commercial Paper ICICI Bank Ltd. LAAA 6.68 Floating Rate Note % GOI (MD ) SOV 2.24 Govt Securities (GSE) 2.24 Shriram Transport Finance Co Ltd. AA(IND) Reliance Utilities & Power Pvt.Ltd. CAREAAA 6.76 Non Convertible Debentures Net Current Asset 0.49 Grand Fund Performance as on 29 th Oct 2010 under the IDFC-SSIF-ST-Growth 4.19% 4.85% % 7.52% Certificate of Deposit: 60.54% 2 Non Convertible Debentures: 18.14% 3 Commercial Paper: 10.88% 4 Floating Rate Note: 6.68% 5 Govt Securities (GSE): 2.24% 6 CBLO: 1.03% 7 Net Current Asset: 0.49% 7.61% 7.45% 7.05% 1 year 2 year 3 year 5 year (14/12/2000) IDFC-SSIF-ST Growth CRISIL Short Term Bond Fund Index Past performance may or may not be sustained in future. 6.71% 7.06% 17

19 IDFC Cash Fund (IDFC CF) An Open Ended Liquid Fund Nature: Liquid Fund Average AUM: `3, Crore Fund manager: Mr. Anupam Joshi Investment objective: IDFC-CF is an open-ended liquid fund with an objective to generate optimal returns with high liquidity by investing in high quality money market and debt instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment Style: The Scheme aims to invest in a highly quality money market instruments with high liquidity and seeks to generate accrual income with low volatility. Ideal investment horizon: 1 day or more Entry load: Nil Exit load: Nil Options available: Growth, Dividend & Dividend Sweep (w.e.f. 16-Nov-2009) Minimum investment amount: ` 5,000 and in multiples of ` 1 in Plan A (Regular Plan), ` 1 Crore and in multiples of ` 1 in Plan B (Institutional Plan), ` 5 Crores and in multiples ` 1 in Plan C (Super Institutional Plan). Additional investment amount: `1 SIP (minimum amount): NA Inception date: 2 July 2001 Statistical Measures: Standard deviation 0.11% Modified duration days Dividend frequency: Daily, Weekly with compulsory re-investment, Periodic (in Plan B only) and (in Plan C only) Last 3 dividends (`/ unit): Date NAV Freq. Other I & H IDFC- CF Plan A 31 Oct Daily Oct Daily Oct Daily Oct Weekly Oct Weekly Oct Weekly IDFC-CF Plan B 31 Oct Daily Oct Daily Oct Daily IDFC-CF Plan C 31 Oct Daily Oct Daily Oct Daily Oct Weekly Sep Weekly Sep Weekly NAV (`): (As on 31 th Oct 2010) Plan A Growth Plan A Dividend Daily Plan A Dividend Weekly Plan B Growth (IP) Plan B Dividend (IP)Daily Plan B Dividend (IP)Weekly Plan C Growth Plan C Dividend Daily Face value (` / unit): 10 Fund manager's comment: The scheme is invested in short maturity liquid instruments in line with its objectives Benchmark: Crisil Liquid Fund Index (CLFI) Data as of 31 October 2010 Name % of NAV CBLO 0.02 Andhra Bank Ltd PR Punjab National Bank PR Allahabad Bank A State Bank Of Patiala A Union Bank of India P IDBI Bank Ltd A Oriental Bank of Commerce P HDFC Bank Ltd. PR Indian Bank F1+(IND) 2.37 ING Vysya Bank Ltd. P Dena Bank F1+(IND) 1.65 Punjab & Sindh Bank Ltd A Andhra Bank Ltd F1+(IND) 1.49 IDBI Bank Ltd P Jammu & Kashmir Bank Limited P Central Bank of India PR UCO Bank P Canara Bank P Bank of Baroda A Certificate of Deposit India Infoline Investment Serv Ltd A Hindustan Petroleum Corporation Ltd. P National Housing Bank A Indian Oil Corporation Ltd. P J M Financial Products Private Ltd. P IDBI Home Finance Ltd. A L&T FINANCE LTD PR Sundaram Finance Limited P Small Industries Dev Bank Of India PR Commercial Paper Canara Bank Indusind Bank Limited P Fixed Deposits - Security Net Current Asset Grand Certificate of Deposit: 71.81% 2 Commercial Paper: 27.25% 3 Fixed Deposits - Security: 18.29% 4 CBLO: 0.02% 5 Net Current Asset: % Fund Performance as on 31 th Oct 2010 under the IDFC-CF-Growth & Rankings 6.61% 6.37% 6.41% 6.23% 5.92% 5.73% 4.49% 4.34% 5.05% 5.28% 6.08% 6.28% 5.80% 5.90% 5.78% Past performance is no guarantee of future results. For Methodology of Ranking Please refer Page No. 50. (Annualised) 7 days (Annualised) 15 days (Annualised) 30 days 1 year IDFC-CF Growth Past performance may or may not be sustained in future. 2 year 3 year 5 year Crisil Liquid Fund Index ( ) 18

20 IDFC Ultra Short Term Fund (IDFC USTF) An Open Ended Income Fund Nature : Income Fund Average AUM :` Crore Fund manager : Anupam Joshi Investment objective : To offer an investment avenue for short term savings by looking to generate stable returns with a low risk strategy. The scheme will have a portfolio that is invested in good quality debt and money market instruments such that the fund will offer a blend of liquidity with stability of returns. There can be no assurance that the investment objective of the scheme will be realized. Investment Style: The Scheme aims to invest predominantly in the overnight money market so as to represent the returns of that part of the money market. Ideal investment horizon : 1 Year or more Entry load : Nil Exit load : Exit Load for all investment including SIP/Micro SIP/STP shall be 1.00% of the applicable NAV if redeemed /switched out within 360 days from the date of allotment Options available : Growth, Dividend & Dividend Sweep (w.e.f. 16-Nov-2009) Minimum investment amount : Minimum of ` 5,000 and in multiples of ` 1. Additional investment amount :`1 SIP (minimum amount) :` 1,000 Inception date : 17 January 2006 Statistical Measures : Beta 0.25 R Square 0.18 Standard deviation 0.13% Dividend frequency : Daily with compulsory re-investment, Weekly with compulsory reinvestment and. Last 3 dividends (` / unit) : Date NAV Freq. Other I & H 29 Oct Daily Oct Daily Oct Daily Oct Weekly Oct Weekly Oct Weekly Oct Sep Aug Data as of 31 October 2010 Name % of NAV CBLO 0.02 ICICI Bank Ltd. A Andhra Bank Ltd F1+(IND) Union Bank of India P South Indian Bank Limited PR Union Bank of India A Bank of Baroda A Oriental Bank of Commerce P IDBI Bank Ltd P Allahabad Bank A Certificate of Deposit Small Industries Dev Bank Of India PR Morgan Stanley (I) Capital Pvt Ltd F1+(IND) 5.90 Edelweiss Capital Limited P Commercial Paper Net Current Asset Grand NAV (`): (as on 29 th October 2010) Plan A Growth Plan A Dividend Daily Plan A Dividend Plan A Dividend Weekly Face Value (` / unit): 10 Fund manager's comment The scheme is invested in overnight CBLO &upto 3 month CD's in line with its objectives. Benchmark :Crisil Liquid Fund Index (CLFI) 2 1 Certificate of Deposit: 68.89% Commercial Paper: 31.64% 3 CBLO: 0.02% 1 4 Net Current Asset: -0.54% Fund performance as on 29 th October under the IDFC-USTF-Growth 8.53% & Rankings 7.56% 7.16% 6.37% 6.32% 6.12% 4.94% 4.72% 4.34% 5.29% 6.09% 5.62% 5.72% 6.35% Past performance is no guarantee of future results. (Annualised) 7 days (Annualised) 15 days (Annualised) 30 days IDFC-USTF Growth 1 year 2 year 3 year Crisil Liquid Fund Index ( ) For Methodology of Ranking Please refer Page No. 50. Past performance may or may not be sustained in future. 19

21 IDFC Savings Advantage Fund (IDFC SAF) An Open Ended Income Fund (w.e.f. March 03, 2010) Data as of 31 October 2010 Nature: Open ended Income scheme Average AUM: ` Crore Fund manager: Mr.Anupam Joshi Investment objective: To offer an investment avenue for short term savings by looking to generate stable returns with a low risk strategy. The scheme will have a portfolio that is invested in good quality debt and money market instruments such that the fund will offer a blend of liquidity with stability of returns. There can be no assurance that the investment objective of the scheme will be realised. Investment Style: The Scheme aims to invest in a highly quality money market instruments with high liquidity and seeks to generate accrual Income with low volatility. Ideal investment horizon: 60 days or more Entry load: Nil Exit load:plan A,F& D: Exit Load for all investment including SIP/Micro SIP/STP shall be 1.00% of the applicable NAV if redeemed / switched out within 91 days from the date of allotment (w.e.f 18 oct 2010). Options available: Growth, Dividend & Dividend Sweep (w.e.f. 16-Nov-2009) Minimum investment amount: Minimum of `5,000 and in multiples of `1 in Plan A, `10,000 and in multiples of `1 in Plan F, `500 & in multiples of `1 in Plan D. Additional investment amount: `1 SIP (minimum amount): `1,000 (Plan A) Inception date: 27 March 2006 Statistical Measures: Standard deviation 0.13% Modified duration days Name % of NAV CBLO 0.11 Canara Bank P Punjab National Bank PR IDBI Bank Ltd A Karnataka Bank Ltd A Federal Bank Ltd. P Certificate of Deposit Securities Trading Corp Ind Ltd P Commercial Paper Net Current Asset 0.92 Grand Dividend frequency: Daily & Weekly (with Compulsory re-investment) Last 3 dividends (`/ unit): Date NAV Freq. Other I & H IDFC-LF Plan A 29 Oct Daily Oct Daily Oct Daily Oct Weekly Oct Weekly Oct Weekly Oct Sep Aug IDFC-LF Plan D 29 Oct Daily Oct Daily Oct Daily NAV (`): (As on 29 th Oct 2010) Plan A Growth Plan A Dividend Daily Plan A Dividend Plan A Dividend Weekly Plan D Growth Plan D Dividend Daily Plan F Growth Plan F Dividend Annual Certificate of Deposit: 80.43% 2 Commercial Paper: 18.54% 3 Net Current Asset: 0.92% Face value (` / unit): 10 Fund manager's comment: The scheme is invested in short maturity liquid instruments in line with its objectives Benchmark: Crisil Liquid Fund Index (CLFI) 1 Fund Performance as on 29 th Oct 2010 under the IDFC-SAF Growth 4 CBLO: 0.11% & Rankings 6.02% 6.37% 6.32% 5.70% 5.77% 6.12% 5.09% 5.29% 5.03% 4.34% 6.01% 6.09% 6.51% 6.39% Past performance is no guarantee of future results. For Methodology of Ranking Please refer Page No 50. (Annualised) 7 days (Annualised) 15 days (Annualised) 30 days 1 year IDFC-SAF Growth Past performance may or may not be sustained in future. 2 year 3 year Crisil Liquid Fund Index ( ) 20

22 IDFC Money Manager Fund Treasury Plan (IDFC MMF-TP) An Open Ended Income Fund Nature: Debt Fund Average AUM: `4, Crore Fund manager: Mr. Anupam Joshi Investment objective: Seek to generate stable returns with a low risk strategy by creating a portfolio that is substantially invested in good quality floating rate debt or money market instruments, fixed rate debt or money market instruments swapped for floating returns and fixed rate debt and money market instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment Style: The Scheme aims to invest only in highly rated money market instruments including floating rate instruments with short term benchmarks. The Scheme seeks to generate returns predominantly through accrual income. Ideal investment horizon: 1 day or more Entry load: Nil Exit load: IDFC-MMF - TP: Plan A, Plan B, Plan C, Plan D & Plan F : Nil. Options available: Growth, Dividend & Dividend Sweep Minimum investment amount: `5,000 and in multiples of `1 in Plan A (Regular Plan), `1 Crore and in multiples of `1 in Plan B (Institutional Plan), `5 Crores and in multiples `1 in Plan C (Super Institutional Plan), `25,000 and in multiples `1 in Plan D, `5,000 and in multiples of `1 in Plan F. Additional investment amount: `1 SIP (minimum amount): `1,000 (Plan A) Inception date: 18 Feb 2003 Statistical Measures: Standard deviation 0.10% Modified duration days Dividend frequency: & Daily / Weekly with compulsory reinvestment Last 3 dividends (`/ unit) : Date NAV Freq. Other I & H IDFC- MMF -TP Plan A 29 Oct Daily Oct Daily Oct Daily Oct Weekly Oct Weekly Oct Weekly Oct Sep Aug IDFC-MMF -TP Plan B 29 Oct Daily Oct Daily Oct Daily Oct Weekly Oct Weekly Oct Weekly Oct Sep Aug IDFC-MMF -TP Plan C 29 Oct Daily Oct Daily Oct Daily Oct Weekly Oct Weekly Oct Weekly Oct Sep Aug IDFC-MMF -TP Plan D 29 Oct Daily Oct Daily Oct Daily NAV (`): (As on 29 th Oct 2010) Plan A Growth Plan A Dividend Daily Plan A Dividend Weekly Plan A Dividend Plan B Growth Plan B Dividend Daily Plan B Dividend Weekly Plan B Dividend Plan C Growth Plan C Dividend Daily Plan C Dividend Weekly Plan C Dividend 10 Plan D Growth Plan D Dividend Daily Plan F Growth Face value (` / unit): 10 Fund manager's comment: The scheme is invested in short maturity liquid instruments in line with its objectives Benchmark: NSE MIBOR INDEX Data as of 31 October 2010 Name % of NAV CBLO 0.03 Punjab National Bank PR Union Bank of India P Allahabad Bank A Karur Vysya Bank Ltd. A Central Bank of India PR Vijaya Bank PR Jammu & Kashmir Bank Limited P Oriental Bank of Commerce P ING Vysya Bank Ltd. P IDBI Bank Ltd A UCO Bank P Canara Bank P Dhanalaxmi Bank Ltd PR Bank of Baroda A State Bank Of Bikaner & Jaipur P Syndicate Bank Ltd. PR Corporation Bank P ICICI Bank Ltd. A Yes Bank Ltd. A Indusind Bank Limited A Federal Bank Ltd. PR Andhra Bank Ltd F1+(IND) 0.14 Indian Bank F1+(IND) 0.07 State Bank Of Mysore A Certificate of Deposit Small Industries Dev Bank Of India PR Aditya Birla Finance Ltd A Edelweiss Capital Limited P ECL Finance Limited A Rashtriya Ispat Nigam Ltd P Rural Electrification Corp Ltd PR Hindustan Petroleum Corporation Ltd. P Commercial Paper Dhanalakshmi Bank Limited Indusind Bank Limited P Yes Bank Ltd. A Canara Bank Fixed Deposits - Security Housing Development Finance Cor Ltd AAA 2.85 Floating Rate Note 2.85 Rural Electrification Corp Ltd AAA 1.54 National Bank for Agri. & Rural Dev AAA 0.57 Power Finance Corporation Limited AAA 0.01 Non Convertible Debentures Days Tbill (MD 03/12/2010) SOV Days Tbill (MD 26/11/2010) SOV 0.25 Treasury Bills 0.78 Net Current Asset 2.68 Grand Fund Performance as on 29 th Oct 2010 under the IDFC-MMF-TP-Growth 6.13% 6.11% 6.02% (Annualised) 7 days % 6.72% 6.59% (Annualised) 15 days IDFC-MMF-TP Growth Past performance may or may not be sustained in future. For Methodology of Ranking Please refer Page No.27 1 (Annualised) 30 days % 1 year 1 Certificate of Deposit: 57.33% 2 Fixed Deposits - Security: 20.62% 3 Commercial Paper: 13.59% 4 Floating Rate Note: 2.85% 5 Net Current Asset: 2.68% 6 Non Convertible Debentures: 2.12% 7 Treasury Bills: 0.78% 8 CBLO: 0.03% 5.46% 4.55% 4.39% 2 year 6.01% 5.99% 5.70% 3 year 6.05% 5 year NSE MIBOR Index 5.64% 5.68% ( ) 21

23 IDFC Money Manager Fund Investment Plan (IDFC MMF-IP) An Open Ended Income Fund Data as of 31 October 2010 Nature: Debt Average AUM: ` Crore Fund Manager: Mr. Anupam Joshi Investment objective: Seek to generate stable returns with a low risk strategy by creating a portfolio that is substantially invested in good quality floating rate debt or money market instruments, fixed rate debt or money market instruments swapped for floating returns and fixed rate debt and money market instruments. However there is no assurance that the investment objective of the scheme will be realized. Investment Style: The Scheme aims to invest in highly rated money market instruments including floating rate instruments with short term benchmarks. The Scheme seeks to generate returns predominantly through accrual income. Ideal investment horizon: 30 days or more Entry Load: Nil Exit Load: Plan A, Plan B & Plan F: Nil (w.e.f 21-oct-2010). Options available: Growth, Dividend & Dividend Sweep Minimum investment amount: `5000 and in multiples of `1 in plan A (Regular Plan), `1 Crore and in multiplies of `1 in plan B (institutional Plan), `5000 and in multiples of `1 in plan F. Additional investment amount: `1 SIP (minimum amount): `1000 (Plan A) Inception Date: 9 August 2004 Statistical Measures: Standard deviation 0.12% Modified duration days Dividend frequency: Daily, weekly (with reinvest facility in both plan A & plan B),, Quarterly & Annual. Last 3 dividends (`/ unit): Date NAV Freq. Other I & H IDFC-MMF-IP Plan A 29 Oct Daily Oct Daily Oct Daily Oct Weekly Oct Weekly Oct Weekly Oct Sep Aug Sep Quarterly IDFC-MMF-IP Plan B 20 Oct Daily Oct Daily Oct Daily Oct Weekly Oct Weekly Oct Weekly Oct Sep Aug NAV (`): (As on 29 th Oct 2010) Plan A Growth Plan A Dividend Annual Plan A Dividend Daily Plan A Dividend Plan A Dividend Quarterly Plan A Dividend Weekly Plan B Growth Plan B Dividend Daily Plan B Dividend Plan B Dividend Weekly Face value (` / unit): 10 Fund Manager's comment: The scheme is invested in short maturity liquid instruments in line with its objectives Benchmark: NSE MIBOR INDEX & Rankings Name % of NAV CBLO 0.11 Andhra Bank Ltd PR IDBI Bank Ltd A Indian Bank F1+(IND) Central Bank of India PR Karur Vysya Bank Ltd. P ING Vysya Bank Ltd. P Yes Bank Ltd. A Allahabad Bank A Federal Bank Ltd. P Union Bank of India P Certificate of Deposit Canara Bank Fixed Deposits - Security 9.51 Net Current Asset Grand Fund Performance as on 29 th Oct 2010 Under the IDFC-MMF-IP Growth Certificate of Deposit: 91.90% 2 Fixed Deposits - Security: 9.51% 3 CBLO: 0.11% 4 Net Current Asset: -1.52% 6.85% 6.72% 6.59% 5.95% 5.81% 5.70% 5.04% 5.54% 4.55% 4.39% 6.33% 6.33% 6.05% 6.13% 5.70% 5.87% Past performance is no guarantee of future results. For Methodology of Ranking Please refer Page No.50. (Annualised) 7 days (Annualised) 15 days (Annualised) 30 days 1 year IDFC-MMF-IP Growth Past performance may or may not be sustained in future. 2 year 3 year 5 year NSE MIBOR Index ( ) 22

24 IDFC Government Securities Fund Investment Plan (IDFC GSF-IP) An Open Ended Dedicated Gilt Fund Nature : Debt Average AUM : `9.20 Crore Fund Manager : Mr. Suyash Choudhary (w.e.f. 15 Oct 2010) Investment objective : IDFC GSF -IP is an open-ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing Government Securities. However there is no assurance that the investment objective of the scheme will be realized. Investment Style : The Scheme proposes to invest only in government securities with the aim of generating stable medium-term returns. Ideal investment horizon : 1 year or more Entry Load : Nil Exit Load : IDFC-GSF - IP : Plan A & Plan B : 1.00% of NAV on investors who purchase/switch in and seek to redeem/switch out such units within 365 days from the date of effecting such purchase/switch in. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options will not be levied an exit load. (w.e.f. August 24, 2009) Options available : Growth, Dividend & Dividend Sweep (w.e.f. 16-Nov-2009) Minimum investment amount :` 5000 and in multiples of ` 1 in Plan A (Regular Plan), ` 25 Lakh and in multiples of ` 1 in Plan B (Institutional Plan). (w.e.f. July 6, 2009) Additional investment amount :` 1 SIP (minimum amount) :` 1000 (Plan A) Inception Date : 9 March 2002 Statistical Measures : Beta 0.86 R Square 0.62 Standard deviation 1.97% Dividend frequency : Quarterly / Half yearly / Yearly. Last 3 Dividends (` / unit) : Date NAV Freq. Other I & H IDFC-GSF-IP Plan A 29-Sep Half Yearly Sep Half Yearly Jun Quarterly Mar Quarterly Dec Quarterly Mar Half Yearly Mar Annual Mar Annual IDFC-GSF-IP Plan B 30-Jun NAV (`) : (As on 29th Oct 2010) Plan A Growth Plan A Dividend Plan A Dividend Half Yearly Plan A Dividend Quarterly Plan B Growth Plan B Dividend Data as of 31 October 2010 Name % of NAV CBLO % GOI (MD ) SOV % GOI 2027 (MD 02/08/2027) SOV % GOI 2022 (M/D 21/09/2022) SOV Govt Securities (GSE) Net Current Asset 0.87 Grand Face Value (` / unit) : 10 Benchmark : ISEC Composite INDEX 2 1 Govt Securities (GSE): 84.67% Fund manager's comment The funds are positioned in the segment of the yield curve where returns will be optimum CBLO: 14.47% 3 Net Current Asset: 0.87% Fund performance as on 29 th Oct 2010: IDFC-GSF-IP Growth 6.87% 7.24% 7.73% 6.82% 5.62% 5.06% 0.71% 0.93% 2.19% 1.59% 1.65% 0.00% 3 month 6 month 1 year IDFC-GSF-IP Growth 2 year 3 year ISEC Composite Index ( ) Past performance may or may not be sustained in future. 23

25 IDFC Government Securities Fund Provident Fund Plan (IDFC GSF-PF) An Open Ended Dedicated Gilt Fund Nature : Debt Average AUM :` Crore Fund Manager : Mr. Suyash Choudhary (w.e.f. 15 Oct 2010) Investment objective : Seek to generate optimal returns with high liquidity by investing in Government Securities. However there is no assurance that the investment objective of the scheme will be realized. Investment Style : The Scheme propose to invest only in government securities with the aim of generating stable medium-term returns. Ideal investment horizon : 1 year or more Entry Load : Nil Exit Load : IDFC- GSF- PF Plan A & Plan B : Exit load of 1.00% of NAV shall be applicable in case of investors who redeem / switch out such investments within 365 days such from the date of effecting such purchase / switch. Investors opting for PEP / Dividend reinvestment option / SWP or switch between options within the plan will not be levied an exit load. Options available : Growth, Dividend & Dividend Sweep (w.e.f. 16-Nov-2009) Minimum investment amount :` 5000 and in multiples of ` 1 in plan A (Regular Plan), ` 25,00,000 and in multiplies of `1 in plan B (institutional Plan). (w.e.f. July 6, 2009) Additional investment amount :` 1 SIP (minimum amount) :` 1000(Plan A) Inception Date : 29 March 2004 Statistical Measures : Beta 0.80 R Square 0.56 Standard deviation 2.04% Dividend frequency : Quarterly / Yearly Last 3 Dividends (` / unit) : Date NAV Freq. Other I & H IDFC-GSF-PF Plan A 30-Jun Quarterly Jun Quarterly Mar Annual IDFC-GSF-PF Plan B 30-Jun Quarterly Dec Quarterly Sep Quarterly NAV (`) : (As on 29th Oct 2010) Plan A Growth Plan A Dividend Plan A Dividend Quarterly Plan B Growth Plan B Dividend Quarterly Face Value (` / unit) : 10 Fund Manager's comment : The funds are positioned in the segment of the yield curve where returns will be optimum. Benchmark : ISEC Composite Index Data as of 31 October 2010 Name % of NAV CBLO % GOI (MD ) SOV % GOI (MD 02/08/2022) SOV % GOI 2022 (M/D 21/09/2022) SOV % GOI (MD 02/07/2040) SOV Govt Securities (GSE) Net Current Asset 0.60 Grand Govt Securities (GSE): 87.74% 2 CBLO: 11.66% 1 3 Net Current Asset: 0.60% Fund performance as on 29th Oct 2010 IDFC-GSF-PF Growth 8.73% 7.73% & Rankings 5.62% 6.33% 6.87% 6.31% 5.83% 0.50% 0.93% 1.70% 2.19% 2.62% Past performance is no guarantee of future results. For Methodology of Ranking Please refer Page No month 6 month 1 year IDFC-GSF-PF Growth Past performance may or may not be sustained in future. 2 year 3 year ISEC Composite Index ( ) 24

26 IDFC Government Securities Fund Short Term Plan (IDFC GSF-ST) An Open Ended Dedicated Gilt Fund Data as of 31 October 2010 Nature : Debt Average AUM :`0.59 Crore Fund Manager : Mr. Suyash Choudhary (w.e.f. 15 Oct 2010) Investment objective : IDFC GSF-ST is an open-ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing Government Securities. However there is no assurance that the investment objective of the scheme will be realized. Investment Style : The Scheme proposes to invest only in government securities with the aim of generating stable medium-term returns. Ideal investment horizon :30 days or more Entry Load : Nil Exit Load : IDFC-GSF - ST Plan A & Plan B: 0.25% of NAV on investors who purchase / switch in and seek to redeem / switch out such units within 30 days from the date of effecting such purchase / switch in. Investors opting for PEP/Dividend reinvestment option / SWP or switch between options will not be levied an exit load. (w.e.f. August 24, 2009) Options available : Growth, Dividend & Dividend Sweep (w.e.f. 16-Nov-2009) Minimum investment amount : ` 5000 and in multiples of ` 1 in Plan A (Regular Plan), ` 25 Lakh and in multiples of ` 1 in Plan B (Institutional Plan) (w.e.f. July 6, 2009) Additional investment amount :` 1 SIP (minimum amount) :` 1000 (Plan A) Inception Date : 9 March 2002 Statistical Measures : Beta 0.15 R Square 0.26 Standard deviation 0.53% Dividend frequency : Quarterly / Last 3 Dividends (` / unit) : Date NAV Freq. Other I & H IDFC-GSF-ST Plan A 07 Aug Weekly Jul Weekly Jul Weekly Oct Sep Aug Sep Quarterly Jun Quarterly Mar Quarterly IDFC-GSF-ST Plan B 21 Aug Weekly Aug Weekly Jul Weekly Mar Quarterly Dec Quarterly NAV (`) : (As on 29th Oct 2010) Plan A Growth Plan A Dividend Plan A Dividend Quarterly Face Value (` / unit) : 10 Fund manager s comment : The fund has a good mix of short dated treasury bills and overnight money markets to reduce volatility. Name % of NAV Net Current Asset 100 Grand Net Current Asset: 100% Benchmark : ISEC Composite INDEX Fund performance as on 29th Oct 2010 IDFC-GSF-ST Growth 6.87% 7.73% 5.62% 4.06% 2.18% 2.19% 3.04% 3.08% 2.43% 0.91% 0.93% 3 month 6 month 1 year IDFC-GSF-ST Growth 2 year 3 year ISEC Composite Index ( ) Past performance may or may not be sustained in futurere 25